BI: Indonesia's Sharia Financial Performance Shows Positive Trends Throughout 2024

JAKARTA - Bank Indonesia (BI) noted that Indonesia's economic and financial performance (expert) continues to show a positive trend throughout 2024, in line with national economic growth.

The leading halal value chain (HVC) sector is recorded to continue to grow and support more than 25 percent of the national economy, driven by the performance of the halal food and Muslim fashion sector, Muslim-friendly tourism, and agriculture.

"Going forward, in line with efforts to support Astacita, various HVC ecosystem strengthening programs through mentoring, empowerment, and increasing halal product literacy are expected to be able to improve quality employment opportunities, encourage entrepreneurship, and develop the creative industry," said BI Senior Deputy Governor Destry Damayanti in her official statement, in Jakarta, quoted by Antara, Saturday, February 22.

Positive performance is shown from the achievement of sharia banking intermediation which also continues to record positive growth and shows the resilience of the Islamic financial industry.

This is reflected in Islamic banking financing which recorded a growth of 9.87 percent year on year (yoy) in December 2024 and the performance of Islamic social finance in 2024 grew 4.7 percent (yoy).

In addition, the 2024 Excise Literacy Index, based on a survey conducted by BI, also increased to 42.84 percent compared to the previous year which was 28.01 percent.

These various achievements have been summarized in the 2024 Indonesian Sharia Economic and Financial Studies (KEKSI) which was launched on Friday, in BI, Jakarta.

Destry said that BI is committed to supporting the development of excise through the BI policy mix. By 2025, the ex-yielding policy will be taken in line with BI's support for Astacita.

One of these policies is in the form of strengthening sharia monetary operations, including in terms of instruments, market players, and regulations to affect the adequacy of liquidity in the money market and sharia foreign exchange (PUVA) market, in line with the issuance of the 2030 Blueprint Money Market Development and Valas Market (BPPU).

In addition, the second policy, namely BI, maintains the mandatory minimum duty of giro (GWM) and capital liquidity buffers (PLM) of Islamic commercial banks to encourage increased liquidity of Islamic banking, respectively by 7.5 percent and 3.5 percent, looser than obligations to conventional commercial banks by 9 percent and 5 percent. Not only that, Islamic banking also benefits from Macroprudential Liquidity Incentive Policy (KLM) instruments.

In the context of developing Islamic economics and finance, BI is working with other stakeholders to also organize the 2025 Sharia Financing Month.

These activities are focused on encouraging innovative sharia financing schemes for waqf-based commercial-social integration, such as cash waqf links (CWLD) and/or housing financing on waqf land for low-income people (MBR) with a linked-linked-linked scheme (SLW).

The series of Sharia Financing Month activities starting from the synergy and cross-K/L collaboration forum and the Islamic financial services industry to the sale of halal products for sharia business actors as well as business and financing agreements. The series of activities will continue until the implementation of the 12th Indonesia Sharia Economic Festival (ISEF) in October 2025.